Republic’s pre-tax income excluding special items, for the fourth
quarter of 2014 was $32.1 million, an 8.4 percent increase over the
fourth quarter or 2013. Republic’s adjusted income from continuing
operations for the fourth quarter of 2014 was $19.8 million, or $0.39
per diluted share, and its adjusted pre-tax margin was 9.3 percent.

For the full year of 2014, Republic’s pre-tax income, excluding
special items, was $120.2 million, a $17.7 million increase over 2013.
Republic’s adjusted income from continuing operations for 2014 was
$73.4 million, or $1.40 per diluted share, with an adjusted pre-tax
margin of 8.7 percent.

On a GAAP basis, including special items, Republic’s fourth quarter
2014 pre-tax loss was $1.4 million, pre-tax margin was -0.4 percent
and income from continuing operations was $11.7 million, or $0.23 per
diluted share. On a GAAP basis, including special items, Republic’s
2014 pre-tax income was $85.2 million, pre-tax margin was 6.2 percent
and income from continuing operations was $64.3 million, or $1.24 per
diluted share.

On Jan. 1, 2015, Republic completed its consolidation of all
Chautauqua Airlines operations onto the Shuttle America operating
certificate. All operating aircraft and related employees are now
transferred to Shuttle America’s operation. Republic hopes to sell the
remaining Chautauqua Airlines entity and related assets during the
first half of 2015.

During the fourth quarter of 2014, Republic extended the service terms
of aircraft under its fixed-fee capacity purchase agreements with US
Airways, Inc. and Delta Air Lines, Inc.Republic also agreed to
operate an additional nine E170 aircraft for Delta Air Lines, Inc.

“We took some significant steps in 2014 in our effort to simplify and
streamline our business,” said Republic Airways Holdings Chairman,
President and CEO Bryan Bedford. “While this simplification strategy
results in near-term transition expenses, such as the fleet impairment
charge we took this quarter, the actions that we’ve taken in 2014 and
that we intend to take in 2015 are key to the future success of our
airline.”

The Company reported the following key metrics for the three months and
years ended Dec. 31, 2014 and 2013:

Three Months ended December 31,

Years ended December 31,

(Unaudited)

2014

2013

%

Increase /

(Decrease)

2014

2013

%

Increase /

(Decrease)

(in millions, except as noted)

Available seat miles (ASMs)

3,753

3,511

6.9

%

14,651

13,486

8.6

%

Block hours (hours)

190,934

194,676

(1.9

)%

763,011

749,931

1.7

%

Operating revenues

$

345.2

$

346.5

(0.4

)%

$

1,375.4

$

1,346.5

2.1

%

Adjusted pre-tax income from continuing operations

$

32.1

$

29.6

8.4

%

$

120.2

$

102.5

17.3

%

Adjusted pre-tax Margin

9.3

%

8.5

%

0.8 pts

8.7

%

7.6

%

1.1 pts

Adjusted income from continuing operations

$

19.8

$

16.5

20.0

%

$

73.4

$

61.4

19.5

%

Adjusted income from continuing operations per diluted share

$

0.39

$

0.30

30.0

%

$

1.40

$

1.13

23.9

%

Adjusted EBITDA from continuing operations

$

106.8

$

96.5

10.7

%

$

411.9

$

362.9

13.5

%

Adjusted EBITDA margin from continuing operations

30.9

%

27.8

%

3.1 pts

29.9

%

27.0

%

2.9 pts

Operating Revenue Highlights

Total operating revenues for 2014 increased by 2.1 percent to $1,375.4
million compared to $1,346.5 million for 2013. Fixed-fee service
revenues increased $72.4 million, or 5.7 percent, to $1,348.5 million
due to increased E175 flying with American Airlines, offset by the
removal of a combined 27 small jets from United and American fixed-fee
service. Passenger service revenue decreased $46.3 million because of
the removal of the last two E190 aircraft operating under a pro-rate
agreement with Frontier.

Operating Expense Highlights

Wages and benefits increased $7.7 million, or 9.0 percent, to $93.2
million for the quarter and $25.9 million, or 7.6 percent, to $368.0
million for the full year 2014 primarily due to increased E175
operations, an increase in the cost of benefits we provide to our
employees and the financial impact of the newly imposed pilot flight and
duty regulations (FAR117) in 2014.

Fuel expense for the fourth quarter of 2014 decreased $3.4 million, or
43.6 percent, to $4.4 million due to a 0.8 million gallon reduction in
gallons consumed as a result of reduced E190 aircraft operations for
Frontier. The fuel cost per gallon, including into-plane taxes and fees,
decreased to $3.28 per gallon in the fourth quarter of 2014, compared to
$3.62 per gallon in the prior year’s fourth quarter.

Fuel expense for the full year 2014 decreased $22.5 million, or 50.1
percent, to $22.4 million compared to $44.9 million for the prior year.
Gallons consumed decreased 51.1 percent because of reductions in E190
aircraft under pro-rate operations at Frontier. The fuel cost per
gallon, including into-plane taxes and fees, increased to $3.67 per
gallon during 2014, compared to $3.60 per gallon in the prior year.

Landing fees and airport rents decreased $2.0 million to $6.1 million
for the quarter and $19.5 million to $26.9 million for the full year
2014. Beginning in June 2013, landing fee expense and the related
pass-through reimbursement revenue from United fixed-fee operations were
no longer incurred as United began paying airports directly for its
landing fee costs. Landing fee expense was also favorably impacted by a
decrease related to the reduction in small jet and pro-rate operations
with Frontier.

Maintenance and repair decreased $8.4 million, or 12.4 percent, in the
fourth quarter of 2014, primarily due to a decrease in flying of 27
small jet aircraft, offset by the increase in engine maintenance
relating to our GE motors on our E170 and E175 aircraft.

Insurance and taxes decreased $2.6 million to $4.0 million for the
quarter and $5.2 million to $19.9 million for the full year 2014,
primarily due to a decrease in property tax expense, which is a pass
through cost under our fixed-fee agreements, coupled with the removal of
27 small jet aircraft flying.

Depreciation and amortization increased $5.6 million to $45.8 million
for the quarter and $22.3 million to $173.0 million for the full year
2014, primarily due to the increase in the E175 operations, offset by
lower depreciation costs on small jet operations.

The impairment and other charges in 2014 were due to impairment and
other charges on owned E140 aircraft which were abandoned of $19.9
million; owned E190 aircraft which are in the process of being sold of
$14.4 million; owned Q400 aircraft which are scheduled to come out of
service in the third quarter of 2016 of $13.3 million, and a loss on
sale of E190 aircraft of $5.8 million. The 2013 impairment charges of
$21.2 million related to owned E190 aircraft and the write-off of
maintenance deposits on leased E190 aircraft.

Fleet Highlights

During 2014, our operational fleet decreased from 258 to 244. The
company took delivery of 22 E175 aircraft, permanently parked 15 E140
aircraft, temporarily parked 13 E145 aircraft, sold two E190 aircraft
and leased three E145 aircraft and three E190 aircraft.

During 2014, we took delivery of 22 E175 aircraft and removed 28 small
regional jets.

In December 2014, we completed the sale of two E190 aircraft and
executed an agreement to sell three other E190 aircraft. The sale of
these five aircraft will leave us with two owned E190 aircraft and three
leased E190 aircraft that are expected to be removed from fixed-fee
charter service in August of 2015. We expect to return the three leased
aircraft to the lessor in 2015 and the remaining two aircraft are under
a firm sales agreement.

Balance Sheet and Liquidity

The Company’s total cash balance decreased $55.1 million to $245.6
million as of Dec. 31, 2014, compared to Dec. 31, 2013. Restricted cash
decreased $2.3 million, to $21.7 million, from Dec. 31, 2013, due to the
escrow requirements under our fixed-fee charter agreements. The
Company’s unrestricted cash balance decreased $52.8 million, to $223.9
million, from Dec. 31, 2013, due primarily to equity investments in new
aircraft and the redemption of the $22.3 million and $26.5 million
convertible notes on April 7, 2014, and Oct. 28, 2014, respectively. The
Company also purchased 212,881 shares of its common stock on the open
market, during the third quarter of 2014 for total consideration of $2.1
million. A consolidated balance sheet and summary cash flow statement
have been included in the tables section of this release.

The Company’s debt increased to $2.34 billion as of Dec. 31, 2014,
compared to $2.17 billion at Dec. 31, 2013, primarily related to the
financing of 22, new E175 aircraft purchased for our American Airlines
fixed-fee agreement. As of Dec. 31, 2014, approximately 98 percent of
our debt is at a fixed interest rate. The Company has significant
long-term lease obligations for aircraft that are classified as
operating leases and are not reflected as liabilities on the Company’s
consolidated balance sheet. At a 6 percent discount factor, the present
value of these lease obligations was approximately $0.48 billion and
$0.59 billion as of Dec. 31, 2014, and Dec. 31, 2013, respectively.

Corporate Information

Republic Airways Holdings Inc., based in Indianapolis, Indiana, is an
airline holding company that owns Republic Airlines, Shuttle America and
Chautauqua Airlines, collectively “the airlines.” As of Dec. 31, 2014,
the airlines operated a combined fleet of about 245 aircraft and offered
scheduled passenger service on more than 1,300 flights daily to
approximately 100 cities in the U.S., Canada and the Caribbean through
fixed-fee flights operated under our major airline partner brands,
including American Eagle, Delta Connection, United Express, and US
Airways Express. The Company currently employs about 6,500 aviation
professionals. For more information about Republic Airways, please visit
our website at www.rjet.com.

The Company will conduct a telephone briefing to discuss its fourth
quarter 2014 results at 10 a.m. (EST) Wednesday, Feb. 25, 2015. This
call is being webcast by Thomson/Reuters and can be accessed at the
Republic Airways Holdings’ website, www.rjet.com.
Those wishing to participate can do so by calling (800) 638-4817.
International callers can participate by calling +1 (617) 614-3943; the
passcode is 77916084.

To listen to a telephone replay of the webcast, call (888) 286-8010 and
use password 60946835. International telephone replay will be available
by calling +1 (617) 801-6888 and using the same password. The replay
will be available from 2 p.m. (EST)Feb. 25, 2015, to 11:59 p.m. (EST)March 4, 2015.

Additional Information

In addition to historical information, this release contains
forward-looking statements. Republic Airways Holdings Inc. may, from
time to time, make written or oral forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. Such
statements encompass Republic Airways' beliefs, expectations, hopes or
intentions regarding future events. Words such as “expects,” “intends,”
“believes,” “anticipates,” “may,” “will,” “should,” “plan,” “estimate,”
“predict,” “potential,” “continue,” or “likely” and similar expressions
as well as the negative of such expressions are used to identify
forward-looking statements. All forward-looking statements included in
this release are made as of the date hereof and are based on information
available to Republic Airways as of such date. Republic Airways assumes
no obligation to update any forward-looking statement. Actual results
may vary, and could differ materially, from those anticipated,
estimated, projected or expected in these forward-looking statements for
a number of reasons, including, among others, the risk factors disclosed
in the Company's most recent filing with the Securities and Exchange
Commission.

REPUBLIC AIRWAYS HOLDINGS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (UNAUDITED)

(In millions, except per share amounts)

Three Months Ended December 31,

Years Ended December 31,

2014

2013

% Increase /

(Decrease)

2014

2013

% Increase /

(Decrease)

OPERATING REVENUES:

Fixed-fee service

$

339.3

$

334.9

1.3

%

$

1,348.5

$

1,276.1

5.7

%

Passenger service

—

4.7

(100.0

)%

—

46.3

(100.0

)%

Other

5.9

6.9

(14.5

)%

26.9

24.1

11.6

%

Total operating revenues

345.2

346.5

(0.4

)%

1,375.4

1,346.5

2.1

%

OPERATING EXPENSES:

Wages and benefits

93.2

85.5

9.0

%

368.0

342.1

7.6

%

Aircraft fuel

4.4

7.8

(43.6

)%

22.4

44.9

(50.1

)%

Landing fees and airport rents

6.1

8.1

(24.7

)%

26.9

46.4

(42.0

)%

Aircraft and engine rent

31.7

31.0

2.3

%

126.0

122.6

2.8

%

Maintenance and repair

59.2

67.6

(12.4

)%

251.1

251.6

(0.2

)%

Insurance and taxes

4.0

6.6

(39.4

)%

19.9

25.1

(20.7

)%

Depreciation and amortization

45.8

40.2

13.9

%

173.0

150.7

14.8

%

Promotion and sales

—

0.2

(100.0

)%

—

2.3

(100.0

)%

Impairment and other charges

33.5

—

100.0

%

53.4

21.2

151.9

%

Other

39.8

43.2

(7.9

)%

149.2

148.6

0.4

%

Total operating expenses

317.7

290.2

9.5

%

1,189.9

1,155.5

3.0

%

OPERATING INCOME

27.5

56.3

(51.2

)%

185.5

191.0

(2.9

)%

OTHER INCOME (EXPENSE):

Interest expense

(29.7

)

(29.1

)

2.1

%

(119.7

)

(112.2

)

6.7

%

Fair value gain - restructuring asset

—

—

—

%

18.4

—

100.0

%

Other, net

0.8

2.4

(66.7

)%

1.0

2.5

(60.0

)%

Total other expense

(28.9

)

(26.7

)

8.2

%

(100.3

)

(109.7

)

(8.6

)%

INCOME (LOSS) FROM CONTINUING

OPERATIONS BEFORE INCOME TAXES

(1.4

)

29.6

(104.7

)%

85.2

81.3

4.8

%

INCOME TAX EXPENSE

(13.1

)

13.1

(200.0

)%

20.9

33.0

(36.7

)%

INCOME FROM CONTINUING OPERATIONS

11.7

16.5

(29.1

)%

64.3

48.3

33.1

%

Loss from discontinued operations, net of tax

—

(0.9

)

(100.0

)%

—

(21.6

)

(100.0

)%

NET INCOME

$

11.7

$

15.6

(25.0

)%

$

64.3

$

26.7

140.8

%

INCOME FROM CONTINUING OPERATIONS

PER COMMON SHARE - BASIC

0.23

0.33

(30.3

)%

1.29

0.98

31.6

%

INCOME FROM CONTINUING OPERATIONS

PER COMMON SHARE - DILUTED

0.23

0.30

(23.3

)%

1.24

0.92

34.8

%

NET INCOME PER COMMON SHARE - BASIC

0.23

0.31

(25.8

)%

1.29

0.54

138.9

%

NET INCOME PER COMMON SHARE - DILUTED

0.23

0.29

(20.7

)%

1.24

0.52

138.5

%

Weighted average common shares

Basic

49.9

49.5

0.8

%

49.8

49.2

1.2

%

Diluted

51.2

54.9

(6.7

)%

52.4

54.6

(4.0

)%

REPUBLIC AIRWAYS HOLDINGS INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(In millions, except shares and per share amounts)

December 31,

December 31,

2014

2013

ASSETS

Current Assets:

Cash and cash equivalents

$

223.9

$

276.7

Restricted cash

21.7

24.0

Receivables - net of allowance for doubtful accounts of $2.6 and
$1.5, respectively

Revenue passenger miles are the number of scheduled miles flown by
revenue passengers.

2.

Available seat miles are the number of seats available for
passengers multiplied by the number of scheduled miles those seats
are flown.

3.

Passenger load factor is revenue passenger miles divided by
available seat miles.

4.

Costs (in all periods) exclude impairments, fair value gain and
other non-operating income. Total operating and interest expenses
excluding other impairment charges is not a calculation based on
accounting principles generally accepted in the United States of
America and should not be considered as an alternative to total
operating expenses. Cost per available seat mile utilizing this
measurement is included as it is a measurement recognized by the
investing public relative to the airline industry.

5.

Hours from takeoff to landing, including taxi time.

6.

Average number of hours per day that an aircraft flown in revenue
service is operated (from gate departure to gate arrival).

7.

Excludes 11 owned and four leased E140 aircraft that were
permanently parked, one owned and 12 leased E145 aircraft that were
temporarily parked, and one owned E135 aircraft and 11 owned E145
aircraft that are leased to other operators, as of Dec. 31, 2014.

8.

Excludes three owned E190 aircraft and three owned E170 aircraft
that are leased to other operators, as of Dec. 31, 2014.

Revenue passenger miles are the number of scheduled miles flown by
revenue passengers.

2.

Available seat miles are the number of seats available for
passengers multiplied by the number of scheduled miles those seats
are flown.

3.

Passenger load factor is revenue passenger miles divided by
available seat miles.

4.

Costs (in all periods) exclude impairments, fair value gain and
other non-operating income. Total operating and interest expenses
excluding other impairment charges is not a calculation based on
accounting principles generally accepted in the United States of
America and should not be considered as an alternative to total
operating expenses. Cost per available seat mile utilizing this
measurement is included as it is a measurement recognized by the
investing public relative to the airline industry.

5.

Hours from takeoff to landing, including taxi time.

6.

Average number of hours per day that an aircraft flown in revenue
service is operated (from gate departure to gate arrival).

7.

Excludes 11 owned and four leased E140 aircraft that were
permanently parked, one owned and 12 leased E145 aircraft that were
temporarily parked, and one owned E135 aircraft and 11 owned E145
aircraft that are leased to other operators, as of Dec. 31, 2014.

8.

Excludes three owned E190 aircraft and three owned E170 aircraft
that are leased to other operators, as of Dec. 31, 2014.

The Company is providing disclosure of the reconciliation of reported
non-GAAP financial measures to its comparable GAAP basis financial
measures. The company believes that the non-GAAP financial measures
provide investors meaningful measurements of the Company's financial
performance.

Three months ended

Full Year

31-Dec-14

31-Dec-14

($ in millions, except per share amounts)

EPS(1)

EPS(1)

Pre-tax income (loss) from continuing operations

$

(1.4

)

$

(0.02

)

$

85.2

$

1.62

Adjustments:

Impairment and other charges

33.5

0.65

53.4

1.02

Chautauqua Restructuring Gain

—

—

(18.4

)

(0.35

)

Adjusted pre-tax income from continuing operations

$

32.1

$

0.63

$

120.2

$

2.29

Adjusted income tax expense (2)

12.3

0.24

46.8

0.89

Adjusted income from continuing operations

$

19.8

$

0.39

$

73.4

$

1.40

Pre-tax margin (GAAP)

(0.4

)%

6.2

%

Adjusted pre-tax margin

9.3

%

8.7

%

Three months ended

Full Year

31-Dec-13

31-Dec-13

($ in millions, except per share amounts)

EPS(1)

EPS(1)

Pre-tax income from continuing operations

$

29.6

$

0.54

$

81.3

$

1.49

Adjustments:

E190 impairment

—

—

21.2

0.39

Adjusted pre-tax income from continuing operations

$

29.6

$

0.54

$

102.5

$

1.88

Adjusted income tax expense (3)

13.1

0.24

41.1

0.75

Adjusted income from continuing operations

$

16.5

$

0.30

$

61.4

$

1.13

Pre-tax margin (GAAP)

8.5

%

6.0

%

Adjusted pre-tax margin

8.5

%

7.6

%

(1)

Diluted EPS, continuing ops

(2)

Adjusted income tax expense was calculated using an estimated
effective tax rate that approximates the statutory rate.

(3)

Represents actual tax expense for the quarter ended December 31,
2013. For the year ended December 31, 2013, represents actual tax
expense plus the tax effect of adjustments calculated at an
estimated tax rate that approximates the statutory rate.

Adjusted EBITDA:

Three months ended December 31,

Year ended December 31,

($ in millions)

2014

2013

2014

2013

Income from continuing operations

$

11.7

$

16.5

$

64.3

$

48.3

Plus:

Income tax expense

(13.1

)

13.1

20.9

33.0

Interest expense

28.9

26.7

118.7

109.7

Depreciation and amortization

45.8

40.2

173.0

150.7

EBITDA from continuing operations

$

73.3

$

96.5

$

376.9

$

341.7

Adjustments:

Impairment and other charges

33.5

—

53.4

21.2

Chautauqua restructuring gain

—

—

(18.4

)

—

Adjusted EBITDA from continuing operations

$

106.8

$

96.5

$

411.9

$

362.9

EBITDA margin %

21.2

%

27.8

%

27.4

%

25.4

%

Adjusted EBITDA margin %

30.9

%

27.8

%

29.9

%

27.0

%

Source: Republic Airways Holdings Inc.

Investor Relations:Republic Airways HoldingsJoe Allman,
317-246-2612

"Safe Harbor" Statement under the Private Securities
Litigation Reform Act of 1995: Statements in this press release regarding Republic
Airways Holdings's business which are not historical facts are "forward-looking
statements" that involve risks and uncertainties. For a discussion of such
risks and uncertainties, which could cause actual results to differ from those
contained in the forward-looking statements, see the summary of risk factors contained
in our earnings release.